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Contracting for Services Guideline

Preamble

University policy states that: “No person
shall commit the university to agreements, licenses, contracts, leases, or
other legally enforceable obligations related to procuring goods and services
unless authorized to do so by the Board of Governors or by Purchasing Services
(to whom such power has been delegated by the Board of Governors).”

Further: “All procurement from external
suppliers must be made using established and approved university procurement
procedures regarding: competitive bid limits, supplier selection – including
preferred supplier contracts and/or single/sole source selection (which can
only be approved by Purchasing Services), contracting for services … and must comply
with funding agency guidelines and all applicable legislation and regulations.”

Contracts for services may be established
between the university and different entities including incorporated businesses,
non-incorporated businesses and individuals.

Purpose

To
ensure that any contracts entered into by the university protect the integrity
of the signing authority policy and manage the risks associated with
contracting out for services, and to outline the different procedures to be
followed by departments planning to enter into a contract for services
arrangement.

Scope

These
guidelines apply to all types of contract for services arrangements and all
departments of the University of Saskatchewan, regardless of the
source of funding including operating, research, trust
and restricted accounts.

Procedures

For
departments that have frequent recurring arrangements for a particular type of
service, they can arrange, via Purchasing Services, to have a contract template
approved through Corporate Administration.
The template can be used to formalize recurring arrangements.

For
any contracted service up to $5,000, a standard agreement has been
created to enable departments to fill-in-the-blanks and supply information
related to the particular arrangement.

Depending
on the estimated dollar value of the contract for services arrangement,
departments need to follow the applicable instructions in this section, points a)
[>$50,000], or b) [>$5,000], or c) [up to $5,000] set forth below when
contracting for services.

Incorporated Businesses / Limited
Companies

Generally
an incorporated business/limited company’s name ends in “LTD.” or “INC.” or
“CORP.”

a) For services valued at greater than $50,000

The contract for services
arrangement must be established under a formal competitive bid process managed
by Purchasing Services. All other documentation and processes identified in
point b) below also apply.

b) For services valued at greater than $5,000

Services over $5,000, but not exceeding
$50,000 in value, may be purchased on the basis of written competitive
quotations from no fewer than three (3) suppliers.

A written contract for services must be
entered into between the university and the incorporated business. The contract must be developed with the due
diligence required by the Signing Authority Policy, including appropriate
contract development and processing support from Purchasing Services and
consultation with other relevant university departments/units (e.g. Risk
Management and Insurance Services, Corporate Administration, etc.)

Once the above steps have been completed, a
purchase requisition must be created so Purchasing Services can set up a
purchase order.

c) For services valued up to $5,000

Services under $5,000.00 may be purchased
based on the requisitioner's knowledge and experience with the service
provider.

A written contract for services must be
entered into between the university and the incorporated business for services valued
above $1,000.00. A standard
University of Saskatchewan “Agreement for Services Valued up to Five Thousand Canadian
Dollars ($5,000.00 CAD)” may be completed and signed by a representative of the
incorporated business and filed in the department. A copy of the standard University of
Saskatchewan “Agreement for Services Valued up to Five Thousand Canadian
Dollars ($5,000.00 CAD)” form and the related help document are available on
the Forms page on FSD’s website (under Procurement-Related Forms).

“Where no changes have been made to
the standard agreement, except by the addition of information in the spaces
provided, deans and heads of administrative units/entities/institutions or
their respective designates (appointed in writing) may sign on behalf of the
chair and the secretary [of the Board of Governors].”

If a
previously approved contract template cannot be used, contact Purchasing
Services for assistance in developing a contract.

Once the above steps have been completed, a
purchase requisition must be created so Purchasing Services can set up a
purchase order.

Note: It is not necessary to complete an
“Agreement for Services Valued Up To Five Thousand Canadian Dollars ($5,000.00
CAD)” for contracted services under
$1,000 unless the activity poses a potential physical hazard to an
individual or a university facility (e.g. use of chemicals, power
tools/machinery, etc.) or involves professional services where the advice could
impact the liability or reputation of the university.

Note: Only approved services can be purchased
using a PCard such as courier services, vehicle rentals, etc.

Non-Incorporated Businessesand Individuals

Before
contracting with an individual or a non-incorporated business, departments need
to complete the “Employment vs Contracted Services Questionnaire.” See the Employment
vs Contracted Services guideline for more information.

The
thresholds (e.g., greater than $50,000, greater than $5,000 and up to $5,000) and
the contracting processes listed under incorporated businesses/limited
companies also apply to non-incorporated businesses and individuals.

A
purchase requisition must be created, when contracting with a non-incorporated
business, so Purchasing Services can set up a purchase order.

Purchase
requisitions/purchase orders are not issued when contracting with an
individual. Payments to individuals for
contracted services require the submission of a completed Service Income
Requisition form and supporting documentation to the Payroll department.